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4 Things to Know About the Blockchain System

blockchain, innovation, business, competitive advantage

Source: Harvard Business Review

Introduction

Why is blockchain becoming a trend for businesses?  There’s one area for improvement that needs help in systems today.  It’s contracts, transactions, and records of actions completed.  Paperwork all over the place.  The system in place hasn’t kept up with the rest of the digital age.  Blockchain can help in this arena if companies started to take advantage.   

The blockchain is open source and takes care of virtual currencies. It records transactions between two people buying and selling currency in permanent ways. If blockchain is in the business world, imagine the possibilities.  Storing contracts without worrying about tampering.  All agreements, process, task, and payment go into the records.  People, agencies, machines, and algorithms would be able to contact and communicate with each other with little trouble.   

The problem here is looking after security and breaking down barriers already in place.  The blockchain isn’t considered a disruptive technology because it will create new foundations.  The ramifications are huge.  

The 4 Adaptations for Blockchain

  1. Single Use – Low coordination applications to make better, cheaper, highly focused solutions. 
  2. Localization – High in innovation but don’t need many users to create usefulness. It makes it easier to promote to the rest of the agency. 
  3. Substitution – These build on what’s already in place.  And here there will be high resistance.  It requires coordinating and replacing systems already fully integrated into systems. It could take years to put in place and start using.   
  4. Transforming – These are new items that will be placed into use, creating fast change to economic, social and political systems.  Smart contracts are the best options to start with now.  It automates payments when conditions are met.   

Summary 

Start the blockchain in single-use applications.  There won’t be as much risk taken during changes as they aren’t new and don’t involve much coordination with third parties. Blockchain can help to find problems quickly through tracking processes agencies have in place already.  Another cool thing is that it could possibly cut costs of transactions.  The big thing to consider is this, if blockchain becomes big in business, it will affect your company in some manner.   

 

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